In a new retail environment that favors personalized choices and innovative methods, retailers who only work with major credit card companies may be at a disadvantage.
However, accepting more payment methods requires email list providers in germany to advantages and disadvantages. Studying all the aspects of these new methods is always valid and advantageous, including whether they fit your target audience. Therefore, we have separated some of them, with their strengths and weaknesses, to help with this analysis.
PayPal
One of the most well-known and widely accepted payment methods in e-commerce is PayPal.
Advantages: Retailers can offer consumers the flexibility to pay with a credit card, bank account, or PayPal. It is easy to set up, and checkout can be customized to fit your brand and business.
Disadvantages: There is a growing industry of PayPal fraud, where customers place an order and then dispute the charge, often leading to a chargeback or complaints against the merchant.
Android Pay and Apple Pay
Especially for online sales using mobile devices, retailers should consider Android Pay (formerly Google Wallet). Customers still use their credit or debit card to make a purchase, but Android Pay pulls billing and shipping information directly from their Google account.
• Pros: A quick and easy checkout process should never take more than two clicks. For e-commerce, there is minimal installation, as the entire process uses an existing payment infrastructure.
• Cons: Only available to Android and iPhone users, or those using Chrome or Safari search engines, which may limit its reach.
Visa Checkout and MasterPass
Both options offer fast and convenient payment by automatically entering the customer’s billing and shipping details.
• Advantages: The trustworthiness of the Visa and MasterCard names is a key advantage. Setup is easy and straightforward. Almost every online customer is already using at least one of these cards. Retailers can also offer special offers to customers who use one of these payment methods.
• Disadvantages: Customers must first install and activate their virtual wallet using Visa Checkout or MasterPass. This is an additional step with keys that must be memorized, which can lead to confusion or irritation.
Bitcoin
The jury is still out on the viability of Bitcoin and its advertising as a legitimate alternative payment method. In the meantime, the most important question retailers can ask is how likely it is that their customers will be part of the Bitcoin world.
Advantages: Fast payments and relatively low processing fees. Payments are fully reversible, so there is no risk of payment fraud or chargebacks.
Disadvantages: Bitcoins are exchangeable, which means their value fluctuates. You will need to work with a Bitcoin exchange to buy, sell, and trade this virtual currency. This article provides an excellent explanation of what Bitcoins are used for:
When considering alternative payment methods, make sure you’re looking at the scenarios from all angles, including:
• Which of these payment methods is most likely to be used by your target audience?
• What features of online commerce do these methods support?
• What security do they provide for both retailers and customers?
• How many payment methods should you offer without unnecessarily complicating your checkout process?
• How do you plan to report and reconcile these payment methods?
The Big First Step: Trusted Partnerships
In some cases, deciding which payment methods to use is easier with some support. Your payments partner can help you answer some of these questions and decide which ones make the most sense for your business, and just as importantly, your anti-fraud partner can help you shield yourself from the risks of these new payment methods.